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Qataris cut Barclays stake

Source: The Guardian

Oct 20, 2009

Summary

Move reignites speculation Qatari royal family could be planning a takeover bid for Sainsbury's

One of Barclays's three major Middle Eastern investors is cutting its stake in the bank, a move that has reignited speculation of a takeover bid for J Sainsbury.

Qatar Holdings announced it is exercising around 50% of the warrants it acquired last October, equal to more than 379m shares, and selling them on the London stockmarket.

Shares in Barclays fell by 4.8% to 363p.

The warrants will be exercised at 197.55p, giving Barclays a £750m windfall. At this morning's share price, this will raise £1.37bn for Qatar Holdings, giving the group a profit of £600m.

Qatar Holdings, which invests on behalf of the Gulf state, insists it is still committed to being a "long-term shareholder" in Barclays, despite cutting its stake.

"The decision to exercise the warrants and dispose of the resultant shares forms part of Qatar Holding's portfolio management programme and does not impact on our current intention to remain a long-term strategic shareholder in Barclays," said Ahmad Al-Sayed,

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